shares plunged more than 19% on Tuesday on the news that it agreed to acquire
for $713 million in stock. At the same time, McData shares soared more than 12%.
Data-storage firm Brocade said its shareholders will end up holding 70% of the combined company's stock. The deal, which is to be tax-free to holders of Broomfield, Colo.-based McData, will have McData holders getting 0.75 Brocade shares for each McData share owned. Both companies have struggled lately, with shares losing more than 80% of their value since a peak in January 2002.
"Today marks an important milestone in Brocade's continued success as a strategic provider to the enterprise customer," said Brocade chief Michael Klayko. "This combination will accelerate the pace of innovation, enable us to build stronger relationships with our customers and partners, and provide greater scale and efficiencies to accelerate our growth. We believe this is a strategic combination that will benefit our customers and create value for our combined stockholders."
Brocade stock was recently trading at $4.97 after losing $1.17. McData shares added 40 cents to trade at $3.51.
tanked on Tuesday after widening its second-quarter loss. Investors unloaded shares at heavier-than-normal rates, sending its price down by 10 cents, or 7.6%, to $1.22.
For its second quarter, Charter lost $382 million, or $1.20 a share, compared with losing $355 million, or $1.17 a share in the same quarter last year.
The St. Louis-based cable and broadband service provider's loss from continuing operations was $402 million, or $1.27 a share, vs. a loss of $359 million, or $1.18 a share over the same period last year. On that basis, Charter fared worse than analysts' expectations of a 93-cent-a-share loss.
The company said sales totaled $1.38 billion, down from $1.27 billion a year ago, and missing the average analysts' forecast of $1.43 billion in revenue.
"We are keenly focused on disciplined, targeted marketing and operational execution aimed at delivering profitable revenue growth," Neil Smit, president and chief executive officer of the company said in a statement. "While there is still a lot of work to be done, I believe that we're building a solid foundation for growth."
surged 10.8% Tuesday after it beat second-quarter revenue expectations on Monday after the bell. It declined to give its bottom-line numbers because it is conducting an internal stock-options probe.
The Chelmsford, Mass., Internet-phone gear manufacturer said revenue was $64.4 million for the second quarter, up from $58.1 million a year ago and $60 million in the first quarter. Analysts surveyed by Thomson First Call were looking for a top line of $59.4 million.
"Given the current focus on employee option grants by public companies, we have proactively initiated a review of our documentation and accounting for historical stock-option grants," CEO Hassan Ahmed said in a statement. "In the spirit of good corporate governance, we are voluntarily evaluating the processes we used to issue options to employees in the past to be sure they are treated properly for accounting purposes. We look forward to providing you with the full details of our financial results, which reflect Sonus' leadership position and growing profitability."
Sonus shares recently added 44 cents to $4.50.
climbed again on Tuesday, rising more than 7% after the company's board
voted to remove its CEO and three other executives for misusing corporate travel funds.
The chipmaker said Monday that George Perlegos, president and CEO, and his brother Gust Perlegos, executive vice president, were fired effective immediately and asked to resign from the company's board. Atmel also axed its general counsel and the vice president of planning and information technology.
George Perlegos had served as CEO since Atmel's inception in 1984, according to
Securities and Exchange Commission
filings. Gust Perlegos had been a company director since 1985.
Atmel also announced that it appointed Steven Laub as president and CEO. Since Feb. 10, Laub has served as a director of the company and was recently a technology partner at
Golden Gate Capital
a private equity buyout firm, and executive chairman of Teridian Semiconductor. From 2004 to 2005, Laub was president and CEO of
. Shares of Atmel were recently changing hands at $5.27, up 38 cents.
Other movers on Tuesday included
, up 21 cents to $24.43,
, off a penny to $17.40,
, off 7 cents to $4.45,
, up 20 cents to $14.82,
, adding 23 cents to $17.55,
, down 33 cents to $21.71,
off 64 cents to $66.57,
up 47 cents to $24.59,
Sirius Satellite Radio
, up 7 cents to $3.88,
down a nickel to $2.10, and
off 47 cents to $34.13.